VANCOUVER, BC / ACCESSWIRE / September 29, 2016 / FIORE EXPLORATION LTD. (TSXV–F.V) (“Fiore” or the “Company”) is pleased to announce that the recently completed magnetic survey over its Pampas El Peñon project in Chile has resulted in the identification of several new epithermal gold-silver targets, as well as confirming targets previously identified through mapping and sampling. Pampas El Penon is immediately adjacent to the Pampas Augusta Victoria (“PAV”) zone at Yamana Gold’s flagship El Peñon Mine (see figure 1). An 8,000 m reverse circulation drill program is currently planned to test the Pampas El Peñon targets, with mobilization of the first rig scheduled for late October.

The Company’s magnetic survey was designed to identify geological features associated with gold mineralization, particularly in areas of alluvial cover. In Yamana’s adjacent PAV open-pit and underground mine, gold-silver mineralization is hosted in and on the margins of banded rhyolite domes and feeders, often associated with north-south structures. Target definition from the magnetic survey was focused on zones of low magnetic susceptibility indicative of these prospective rhyolite domes.

In Fiore’s southwestern concession block, a total of five targets were identified, including two that were previously identified by mapping and surface sampling (see figure 2). The first target, W1, is an outcropping rhyolite dome with a coincident arsenic-antimony anomaly and a low magnetic susceptibility signature that extends for at least 1.7km in a north-south direction. The second target, W2, is an outcropping jasperoid breccia body, also with elevated arsenic and antimony values and low magnetic susceptibility. Antinomy and arsenic are both common pathfinder elements for epithermal gold deposits, and are strongly associated with epithermal gold-silver veins at the adjacent El Peñon mine. The other three targets identified on the southwestern concession block occur beneath alluvial cover but exhibit the same low magnetic susceptibility signature as the outcropping targets.

In Fiore’s northern concession block, two high priority and several secondary targets were identified by the survey (see figure 2). The northern block is almost entirely covered by alluvium and drilling here will be dependent on the results of the initial drill holes on the southwestern concession.

Tim Warman, Fiore’s CEO stated, “We are extremely pleased with the results of the magnetic survey and are looking forward to the upcoming drill program. Not only has the survey confirmed the prospectivity of the previously identified targets, but it has also identified several new targets beneath the alluvial cover.”

The detailed geophysical survey was carried out in August 2016 by Argali Geofisica (“Argali”) of Antofagasta, Chile, and consisted of approximately 728 line kilometres of ground magnetics at 50 m line spacing. Modelling and interpretation of the data was carried out independently by Argali, and by Ellis Geophysical Consulting Inc. of Reno, Nevada, with the highest priority given to targets identified by both consultants.

Vern Arseneau, P. Geo., Fiore’s VP Exploration, is the Qualified Person who supervised the preparation of the technical data in this news release.

About Fiore Exploration

Fiore Exploration is a Latin America focused gold explorer, whose main project is the Pampas El Peñon gold project in Chile, which covers land in the same geological environment as Yamana’s flagship El Peñon mine.

On behalf of FIORE EXPLORATION LTD.

“Tim Warman”
Chief Executive Officer

For further information please contact: 604-609-6110

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Disclaimer for Forward-Looking Information

“This press release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as “may,” “will,” “should,” “anticipate,” “plan,” “expect,” “believe,” “estimate,” “intend” and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management of the Company in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-looking information and statements involve known and unknown risks and uncertainties that may cause the Company’s actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and accordingly, undue reliance should not be placed thereon.

Risks and uncertainties that may cause actual results to vary include but are not limited to the availability of financing; fluctuations in commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management’s Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. The Company disclaims any obligation to update or revise any forward-looking information or statements except as may be required.”

SOURCE: Fiore Exploration Ltd.

ReleaseID: 446200

CALGARY, AB / ACCESSWIRE / September 29, 2016 / Teras Resources Inc. (TSXV: TRA) (“Teras”): Peter Leger, President and Chief Executive Officer of Teras is pleased to announce that the company has engaged Strategic Advisor Red Cloud Klondike Strike Inc. (“Red Cloud”), a Toronto based company, to assist Teras as their flagship project “Cahuilla” advances to a new level.

The Red Cloud team has a mix of in-house technical and financial expertise with over 100 cumulative years of combined mining and corporate finance experience. Working as an extension of management, the Red Cloud team uses its global network of mining and capital markets professionals and extensive in-house experience in the many facets of the mining business to help companies identify sources of capital and quality actionable merger, acquisition and divestiture opportunities, and to generate and maintain important relationships with key investors.

Teras looks forward to working with Red Cloud’s team of professionals to develop both market awareness and exploring potential transactions which will be beneficial to our shareholders.

Teras has today granted 1,250,000 million options to purchase common shares of the Company to directors, officers, and consultants of the Company in accordance with the Company’s stock option plan (850,000 of these Options are replacing recently expired Options). The options have an exercise price of $0.15 per share. The expiry date of the options will be 5 years from the date of issuance, being September 29th, 2021.

“Teras has determined that there are exemptions available from the various requirements of TSX Venture Policy 5.9 and Multilateral Instrument 61-101 for the issuance of the options to the directors and officers of Teras (Formal Valuation – Issuer Not Listed on Specified Markets; Minority Approval – Fair Market Value Not More Than 25% of Market Capitalization).”

About Teras

Teras is focused on developing its Cahuilla project located in Imperial County, California. The project encompasses an area of at least 3 km by 1.5 km and Teras believes that the Cahuilla project has the potential to develop into a mining operation consisting of altered and mineralized sedimentary and volcanic host rocks with numerous sheeted high-grade quartz veins. Teras filed a NI 43-101 technical report with an indicated resource of 1.0 million ounces of gold and 11.9 million ounces of silver on its Cahuilla project (70 million tons at an average grade of 0.015 ounces per ton gold and 0.17 ounces per ton silver with a cut-off of 0.008 ounces per ton gold) and inferred class of 10 million tons grading 0.011 opt gold and 0.10 opt silver. Gold equivalent ounces are 1.2 million ounces in indicated class and 130,000 ounces in inferred class using a ratio of 55 silver ounces to 1 gold ounce.

Dr. Dennis LaPoint, a qualified person under National Instrument 43-101 “Standards of Disclosure for Mineral Projects”, and a Director for Teras is the Company’s nominated qualified person responsible for monitoring the supervision and quality control of the programs completed on the Company’s properties. Dr. LaPoint has reviewed and verified the mining, scientific and technical information contained in this news release. Dr. LaPoint is a registered geologist with the Society of Mining Engineers. 

For further project and corporate information, contact: 

Teras Resources Inc.
Peter Leger, President
(403) 262-8411
(403) 852-0644
Email: pleger@teras.ca
Website: www.teras.ca 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this news release. 

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein may be forward-looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as “plans”, ” expects” or “does not expect”, “proposed”, “is expected”, “budgets”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. In particular, this press release contains forward-looking information regarding: the Cahuilla project, the development and advancement of the Cahuilla project, the development of the geologic model in respect of the Cahuilla project, the development of further drill plans in relation to the Cahuilla project and the potential of the Cahuilla project to develop into a mining operation; and the completed core drilling program including further analysis of the core drilling program, the evaluation of the core drilling program and its impact on the Company’s existing NI 43-101 technical report. This forward-looking information reflects the Company’s current beliefs and is based on information currently available to the Company and on assumptions the Company believes are reasonable. These assumptions include, but are not limited to, the actual results of exploration projects being equivalent to or better than estimated results in technical reports or prior exploration results, future costs and expenses being based on historical costs and expenses, adjusted for inflation, the ability of the Company to obtain acceptable financing, market acceptance of its exploration programs and projects; consistent and favorable commodity prices; and regulatory acceptance of the Company’s geologic models . Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: the early stage development of the Company and its projects; general business, economic, competitive, political and social uncertainties; commodity prices; the actual results of current exploration and development or operational activities; competition; changes in project parameters as plans continue to be refined; accidents and other risks inherent in the mining industry; lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting the Company; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; and lack of qualified, skilled labour or loss of key individuals. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

SOURCE: Teras Resources Inc.

ReleaseID: 446223

Production Volume Exceeds $2.83 Billion as Mortgage Origination Growth Accelerates Across All Business Channels

SANTA ANA, CA / ACCESSWIRE / September 29, 2016 / Stearns Lending, LLC, a leading provider of mortgage lending services in Wholesale, Retail, Correspondent and Strategic Alliances sectors, today announced that the Company broke all previous records, reaching a major milestone of $2.83 billion in production volume for the month of August 2016.

“Our record-breaking performance in August underscores the effectiveness of our strategies and our unwavering determination to further solidify our position as a force to be reckoned with in the mortgage industry,” said Brian Hale, CEO of Stearns Lending.

“In 2015, we achieved 117.2 percent year-over-year growth in overall volume and set our sights on reaching more impressive heights in 2016. This year we are on target to exceed previous levels of growth thanks to many factors, including full implementation of a proprietary loan origination system, superior adaptation to the post-TRID regulatory environment, and most important of all – our world-class workforce comprised of the industry’s most talented and dedicated mortgage professionals,” Hale added.

Stearns’ strategic focus on growing its Wholesale, Retail, Correspondent and Strategic Alliance channels has resulted in the hiring of over 1,170 employees in the past 12 months. Ideally positioned for continued growth, the Company expects to continue aggressively adding talent in a variety of positions and markets throughout the United States moving forward.

For more than 27 years, Stearns has been helping employees, borrowers and business partners to reach their goals by successfully exceeding expectations and leading the industry with innovation and efficiency. To learn more about Stearns, visit stearns.com and join.stearns.com.

About Stearns Lending, LLC

Stearns Lending, LLC is a leading provider of mortgage lending services in Wholesale, Retail, Correspondent and Strategic Alliances sectors throughout the United States. Currently ranked as #2 Wholesale Lender nationwide*, Stearns Lending continues to expand as a company overall, making the Inc. 5000 list of Fastest Growing Private Companies in America in 2013, 2014 and 2015**, based on revenue growth of 250% over a three-year period.

Stearns Lending is an equal housing lender and is licensed to conduct business in 49 states and the District of Columbia. Additionally, Stearns Lending is an approved HUD (United States Department of Housing and Urban Development) lender; a Single Family Issuer for Ginnie Mae (Government National Mortgage Association); an approved Seller/Servicer for Fannie Mae (Federal National Mortgage Association); and an approved Seller/Servicer for Freddie Mac (Federal Home Loan Mortgage Corporation). Stearns Lending is also approved as a VA (United States Department of Veterans Affairs) lender, a USDA (United States Department of Agriculture) lender, and is an approved lending institution with FHA (Federal Housing Administration). Stearns Lending, LLC is located at 4 Hutton Centre Drive, 10th Floor, Santa Ana, CA 92707. Company NMLS# 1854.

For more information, visit www.stearns.com.

Media Contact

Brad Hoke
bhoke@stearns.com
Executive Vice President
972-521-1057

References

*http://www.insidemortgagefinance.com/

Top Broker Channels. Rep. no. 12M2015. Inside Mortgage Finance, Dec. 2015. Web. 15 Mar. 2016.

**http://www.inc.com/profile/stearns-lending

“The 2013 Inc. 5000.” The 2013 Inc. 5000. Inc.com, Aug. 2013. Web. 18 Mar. 2015.
“The 2014 Inc. 5000.” The 2014 Inc. 5000. Inc.com, Aug. 2014. Web. 18 Mar. 2015.

SOURCE: Stearns Lending, LLC

ReleaseID: 446018

MORRISTOWN, NJ / ACCESSWIRE / September 29, 2016 / Louis Berger’s corporate Chief Operating Officer James Bach was named to the board of directors for the New York Building Congress, a coalition of business, labor, professional and governmental organizations serving the design, construction and real estate industry in New York City.

“I’m honored to support the NY Building Congress in its goal to educate, influence and advance the role of infrastructure on the social and economic health of New York City,” said Bach.

Bach oversees day-to-day operations at Louis Berger as well as the coordination between the firm’s three operating companies and its affiliate brands. During his 30 years at Louis Berger, he has held a series of leadership roles within the company, including leadership for the company’s U.S. operations and serving as principal-in-charge for the company’s long-standing work with the Port Authority of New York and New Jersey. Bach is a professional planner in New Jersey and holds a master’s of city and regional planning from Rutgers University.

The Building Congress represents contractors, architects, engineers, unions, real estate managers, developers, and owners who comprise the building community and consists of more than 250,000 skilled tradespeople and professionals. The Building Congress supports sound public policy, promotes productive capital spending, encourages public-private partnerships, and evaluates the implementation of major government projects.

About Louis Berger

Louis Berger is a $1 billion global professional services corporation that helps infrastructure and development clients solve their most complex challenges. We are a trusted partner to national, state and local government agencies; multilateral institutions; and commercial industry clients worldwide. By focusing on client needs to deliver quality, safe, financially-successful projects with integrity, we are committed to deliver on our promise to provide Solutions for a better world.

Louis Berger operates on every habitable continent. We have a long-standing presence in more than 50 nations, represented by the multidisciplinary expertise of nearly 6,000 engineers, economists, scientists, managers and planners. For more information, visit louisberger.com.

Pictured above: Louis Berger COO, James Bach

SOURCE: Louis Berger

ReleaseID: 446192

High Demand for Anthracite Coal. Aim Can Deliver

HENDERSON, NV / ACCESSWIRE / September 29, 2016 / AIM exploration (OTC: AEXE) CRU, an independent authority states that Metallurgical coal has been the star-performing commodity of the year so far. The premium hard coking coal (anthracite) spot prices are surging upwards and reaching $163/t, up 108% since the start of the year and the highest level since February 2013.

What this means to AIM Exploration Inc. is that the anthracite coal AIM has in their Peruvian concessions is even more attractive. With the infrastructure is in place, AIM is getting geared up to begin. This includes extraction through the local miners, transportation on roads that are capable of handling the coal, and the Port of Salaverry is ready willing and able to handle the requirements.

J.R. (Bob) Todhunter, President & CEO states, “AIM is well positioned to capitalize on this strong value and this should prove to be a very profitable.” Todhunter further went on to say, “AIM is close now to completing the marketing joint venture in Dubai with Prina Energy of India and it is anticipated formal Purchase Orders will be forthcoming.

Also, an update on our website has been made and emphasizes this coal project as the flagship project, it should be highly noted regarding the infrastructure to ‘bring to port’ for coal. We have the infrastructure such as roads, bridges, equipment, and payload Gross weight allowable transport such as loader trucks with transport capability to support 25-tons. The road to Otuzco is well maintained supporting 25-ton trucks. This will facilitate smooth hauling of coal to the port.”

We welcome our audience to view our website. http://aimexploration.com/peru-operations-plan.

And we also welcome people to follow our twitter feed at www.twitter.com/aexeqb which has 1500 followers and growing. “This gives us indication that clean energy is a global concern and enforces our belief that is why we need to carry out our objective of mining clean high BTU anthracite coal,” says J.R. (Bob) Todhunter.

About AIM Exploration:

The Company is an Anthracite coal mining and exploration company and plans to mine 1,000 hectares of land. Putting this into perspective, 1,000 hectares is 3 times the size of Central Park. We have expertise in business, mining, and legal with our distinguished board of directors. We have amicable relationships with all parties involved in mining in Peru. We are a SEC reporting publicly traded company with the symbol (OTC: AEXE).

Forward-Looking Statements

Certain information set forth in this press release contains “forward-looking statements” and “forward-looking information” under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements, which include management’s assessment of future plans and operations and are based on current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. The Company is not basing its production on a feasibility study of mineral reserves that has demonstrated economic and technical viability. Also, please provide additional disclosure of the increased uncertainty and the specific economic and some of the forward-looking statements may be identified by words such as “estimates,” “expects,” “anticipates,” “believes,” “projects,” “plans,” “targets,” and similar expressions. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause AIM’s actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements.

Contact: info@aimexploration.com
Twitter: www.twitter.com/aexeqb or @aexeqb
Website: www.aimexploration.com
AIM Exploration Inc.
J.R. (Bob) Todhunter

SOURCE: Aim Exploration Inc.

ReleaseID: 446196

ROCK HILL, SC / ACCESSWIRE / September 29, 2016 / A leader in sustainable glycol solutions, GlyEco, Inc. (“GlyEco” or the “Company”) (PINK SHEETS: GLYE), announced the completion of its Quality, Research, and Development Laboratory in Rock Hill, South Carolina. The laboratory, located in GlyEco’s Innovation Studio, is used to support GlyEco’s Quality Control & Assurance Program, develop new products, enhance its customer training platform, identify and onboard alternative glycol feedstock streams, and reduce the cost of processing waste materials entering its facilities.

GlyEco’s President and CEO, Grant Sahag, stated, “One of our objectives in 2016 is to advance our intellectual property. We have formed the GlyEco Innovation Studio and rolled out our testing and R&D lab in Rock Hill to support customers, develop technology, and provide glycol testing to our industry partners. We are dedicated to being a thought leader in the glycol space, and the lab will further institutionalize our intellectual property, advance our expertise in glycol recycling and antifreeze sales, and reduce our cost to develop, secure, and analyze incoming glycol waste streams. The Innovation Studio is a gathering place for employees and stakeholders to create and collaborate in the interest of advancing technology in our business and industry – furthering the mission of GlyEco University.” Mr. Sahag continued, “The capital invested in our laboratory helps realize our goal of providing high-quality products through a fully integrated solutions platform, while furthering our long-term commitment to innovation.”

GlyEco’s Vice President of Quality and Research, Wayne Merrifield, commented, “GlyEco is a glycol solutions provider, and as a cornerstone of our strategic and tactical goals, the investment into our own laboratory provides a strong competitive advantage for our company. The lab is equipped with state-of-the-art instrumentation comparable to that utilized in the largest world class industrial labs. Our expanded lab capabilities will be utilized to enhance product quality through timely and sophisticated testing, and solidify our three-tiered quality control and assurance program. We continue to integrate technology developed in the field with innovations identified here in South Carolina. These advancements will improve our product quality and support a broader range of customers as we move up the value chain.”

About GlyEco, Inc.

GlyEco is a collector, manufacturer, and distributor of glycol products sold to automotive and industrial customers throughout the United States. Our six facilities deliver superior quality glycol products through a fully-integrated solutions platform. We are dedicated to providing solutions, not just products: consistent, timely, and customized service; environmentally safe handling of waste; product and technology education; and technical performance support.

For further information, please visit: http://www.glyeco.com

To partner or to start a project with us, please visit: Start a Project with GlyEco!

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting the Company’s business including, increased competition; the ability of the Company to expand its operations through either acquisitions or internal growth, to attract and retain qualified professionals, and to expand commercial relationships; technological obsolescence; general economic conditions; and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission.

Contact:

GlyEco, Inc.
Ian Rhodes
Chief Financial Officer
irhodes@glyeco.com
866-960-1539

SOURCE: GlyEco, Inc.

ReleaseID: 446164

LONDON, ENGLAND / ACCESSWIRE / September 29, 2016 / OPEC’s attempts to undermine US shale and regain lost market share hit hard, but not definitively. Now US shale producers have regrouped, and there is a second revolution in the making-this time it’s about efficiency and at its core is frac sand – the more, the better.

Welcome to the era of the ‘mega-frac’, as US producers create more fractures in rock to get more oil and gas out. And the ‘mega-frac’ requires mega sand to keep the fractures open, creating a bonanza situation particularly for unique micro-cap sand miners like Select Sands Corp. (TSXV-V: SNS).

Hydraulic fracturing involves injecting highly pressurized water and sand into a well, widening the tiny fractures created by the water and sand blast so that more crude oozes from the shale rock.

Producers are now using more sand, or proppants, per well than anyone ever imagined, bringing the frac sand sub-sector to the forefront of oil and gas investing in a very urgent and dramatic way.

Now, even with a rig count that is only half what it was at the height of the shale boom, Credit Suisse analysts predict that by just 2018, sand volumes used in fracking will surpass the boom levels of 2014. This will make frac sand the “fastest-growing sub-segment” in the oilfield services and equipment market.

Credit Suisse isn’t alone in this prognosis: Tudor Pickering predicts the amount of sand used per horizontal well will jump from 8 million pounds (4,000 tons) today to a staggering 11 million pounds (6,500 tons) already next year, and will continue to break records in the following years.

It’s been great for frac sand stocks, with US Silica (NYSE:SLCA) jumping from $16 to $40 this year, but from an investment perspective, there aren’t many plays to choose from here. And there’s really only one micro-cap listed that is geographically positioned to benefit from this shale efficiency revolution: Select Sands Corp. (TSXV-V:SNS). Being a micro-cap, Select Sands is flying under the radar (at least for now) and has no analyst coverage.

Here are 10 (plus one) reasons why you should keep an eye on Select Sands Corp. (TSXV-V:SNS) which owns a substantial permitted quarry in Arkansas containing a desirable mix of Premium Tier 1 “Ottawa White” high purity 40/70 and 100 mesh silica.

#1 This is “Proppant-Geddon”

Shale boomers’ efforts to stay afloat amid the worst of the price crisis were centered on cost-cutting and efficiency improvements. A lot of companies managed to significantly improve their yields of oil and gas per well simply because they started using more and more sand. The more sand used in a well, after the pressurized liquid and sand is injected in the rock, the larger the fractures in the rock oozing precious oil and gas. Thanks to sand, you get a lot more oil and gas out of a well at no great additional cost.

All the major US shale drillers are ramping up their sand use exponentially. EOG Resources (NYSE: EOG) is now making 700% more fractures compared to 2010, and it’s using massive volumes of sand to fill them. Likewise, Chesapeake (NYSE:CHK) put more than 30 million pounds (15,000 tons) of sand into its Haynesville shale in Louisiana, and plans to test a 50-million-pound load (25,000 tons) later this year. The company views the amount of sand now being used as unprecedented to the point that it refers to it as “proppant-geddon“.

#2 Welcome to the “Mega-Frac”

Hailed as the response of the shale boomers to the OPEC strategy, the mega-frac approach comes down to using more water and liquids, and then sand, to increase substantially the number of fractures in the oil-bearing rock. Sand, together with impressive improvements in well design and injection technology, is what guarantees the higher yield per well in mega-fracs.

#3 Skyrocketing Demand

Greater efficiency means cheaper wells and cheaper wells mean more wells, all of which need to be filled with millions of pounds of sand. Tudor Pickering said in a recent report that the average amount of sand used per well will shoot up from 8 million pounds (4000 tons) to 11 million pounds (6,500 tons) next year. In some places such as the Permian, where drilling and production have been recently expanding due to the low production costs, Tudor Pickering projects an increase to as much as 35 million pounds (17,500 tons) of sand per well by the end of 2017. Credit Suisse predicts a 50% increase on 2015 demand and is eyeing 62.8 million tons of frac sand demand in 2018. In 2017, we could be looking at 49.4 million tons.

The bottom line? Demand for sand in 2017, particularly the finer grade (40/70 and 100 mesh) high purity sand contained in Select Sands’ Arkansas quarry, could end up being twice the demand of 2014—at the height of the shale boom. There may even be a shortage of finer grade frac sand by the first quarter of 2017.

#4 Strongest Margin Expansion in Oilfield Services Sector

Select Sands (TSXV:V.SNS) is right in the middle of what Tudor Pickering views as the oilfield services sector with the strongest margin expansion – and this expansion is far from over. Tudor Pickering says finer mesh white sand pricing at the minegate should reach $65 per ton, compared to the current $20 per ton.

#5 Not all Sand is Equal

Select Sands mines high-quality Northern White finer grade sand from the Sandtown deposit in Arkansas, with indicated resources of 41.98 million tons as of February this year. The sand is high-purity, meaning it contains a high purity silica content (exceeding or meeting various industrial and API Tier 1 specifications) with the right shape and it has high crush resistance. The right shape for good frac sand is as close to round as possible, which enables more efficient infiltration of rock fractures to keep it open and keep the oil flowing.

#6 Cost-Effective Geography and Logistics

The surge in frac sand demand could soon lead to some logistics bottlenecks.

Select Sands’ Sandtown quarry is located in northeastern Arkansas, in close proximity to the Permian and the Eagle Ford plays in Texas, Haynesville shale in Louisiana and Fayetteville shale in Arkansas. This means there is a lot to be saved on transportation costs, compared with the other main source of high-quality (but expensive) frac sand located in Wisconsin. The Select Sands’ quarry also has the added advantage of a developed transport infrastructure: it’s just 3.1 miles from a highway and 15 miles from a railway.

And the shift is about more than transportation: It’s about the industry’s cost-cutting desires to replace the more expensive sand mined in Wisconsin and Minnesota with regional sands of Texas and Arkansas.

#7 Lucrative Game of Catch-Up in the Permian

Right now, the Permian Basin is playing a quick game of catch-up with other basins in terms of how much sand they are using for mega-fracs. This means that all eyes are on sand demand in this basin, and whoever is closest can get it there cheaper.

#8 Additional Upside – So Many Uses for Sand

High-purity finer grade silica sand is not just used for fracking. It’s indispensable in ceramics, metal-making, chemical products, glass, paints, and surfacing materials. In other words, Select Sands, which mined its first silica sand at Sandtown last year, is successfully providing test samples of its high mesh silica to a host of industrial companies from the glassworks, ceramics, chemicals, and metal-forging industries and appears to be on the verge of obtaining substantial orders. Selling high-purity finer mesh white sand to the industrial market has the advantage of higher margins, although typically smaller volumes, than sales to the oil and gas frac sand market.

#9 Pure-Play Power

Pure-play sand-mining is a winner at a time when demand for frac sand is soaring and set to explode in a very short time. In demonstration of its focus on its main operation, Select Sands recently announced its divestment of its gold mining projects in Canada to Comstock Metals in return for 20 million shares in Comstock Metals (symbol: CSL.V traded on the Toronto Stock Exchange, Venture Exchange) which represents nearly a 35% ownership in Comstock Metals.

Select Sands recently announced that it bought a wet processing facility near Sandtown. This acquisition will further reduce costs of production and make its sand all the more appealing for the frugal oil and gas industry. The Company plans on buying a dry plant and other facilities as well in the area and is currently considering its options.

#10 The Only Micro-Cap Positioned to Take Advantage of the Sand Boom

There are just a handful of public frac sand producers in the U.S. and most of them are big–and expensive. Select Sands is a great example of a penny stock worth investors’ attention, with a market cap of $27.82 million at present. The company has made high-quality silica sand mining its exclusive focus and is committed to further growing its production and processing assets in northeastern Arkansas. Investors also receive a virtually free option in Comstock Metal’s growth.

#11 50% Share Price Jump

With a choice of sand-dependent industries as existing and prospective clients, and with the bullish prospects for the second shale revolution Select Sands is among the best-placed companies in its segment, last month adding 50% to its share price thanks to the favorable trends. That’s a segment, by the way, that has seen a notable pick-up in M&A activity reflecting the sand demand growth.

U.S. Silica, for example, recently bought a Texas sand mine plus a frac sand logistics company. Select Sands is an excellent opportunity as a standalone business and, equally, a tasty morsel for bigger players. Given the supply/demand trends, the company’s stock won’t stay cheap for too long particularly as it is still a hidden gem.

At this point, the market strongly believes that we’re done with price concessions from sand suppliers particularly those suppliers owning a substantial high-quality, high-purity, finer grade silica quarry in a geographically advantageous location. According to analyst forecasts, frac sand use is set for strong and continued growth even if – and that’s the best part – crude oil remains within the $40-$50 range.

In other words, this revolution is not contingent on an oil price rally, and that makes a perfectly positioned small-cap a perfectly attractive play.

By. James Burgess of Oilprice.com

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SOURCE: OILPrice.com

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